Amcor Limited to acquire Bemis after a unanimous approval

AUSTRALIA – Amcor Limited, a global packaging company, and Bemis Company, Inc., a global manufacturer of flexible packaging products, have announced that their respective Boards of Directors have unanimously approved a definitive agreement under which Amcor will acquire Bemis in an all-stock combination.

According to Amcor, the partnership will provide the footprint, scale and capabilities to drive significant value for shareholders, offer customers and employees the most compelling value proposition in the packaging industry and deliver the most sustainable innovations for the environment.

The transaction will be effected at a fixed exchange ratio of 5.1 Amcor shares for each Bemis share, resulting in Amcor and Bemis shareholders owning approximately 71% and 29% of the combined company, respectively.

This is equivalent to a transaction price of US$57.75 per Bemis share based on Amcor’s closing share price of US$15.28 on August 3, 2018, and represents a premium of 25% to Bemis’ closing price of US$46.31 per share as of August 2, 2018(5).

“The strategic rationale for this combination and the financial benefits are highly compelling for both Amcor and Bemis shareholders.

We are convinced this is the right deal at the right time for both companies, and with the right structure for both sets of shareholders to participate in a unique value creation opportunity.

Amcor identified flexible packaging in the Americas as a key growth priority and this transaction delivers a step change in that region,” said Amcor’s CEO, Ron Delia.

“There are an increasing number of opportunities arising for a leading packaging company to capitalize on shifting consumer needs, an evolving customer landscape and the need to provide responsible packaging solutions that protect the environment.

With this transaction, Amcor will have a stronger value proposition with the scale, breadth and resources to unlock value from these opportunities, for the benefit of our shareholders, customers and employees.”

Bemis’ President and CEO, William F. Austen, said: “The combination of Bemis and Amcor is transformational, bringing together two highly complementary organizations to create a global leader in consumer packaging.

We believe this combination, which is an exciting growth story for both companies, will benefit all stakeholders.

Our employees will benefit as part of a larger and more global organization focused on a commitment to customer service, integrity and supporting strong teams.

In addition, the combination will enable us to offer global, regional and local customers the most compelling value proposition in the industry through a broader product portfolio, increased product differentiation and enhanced operating capabilities, while leveraging Bemis’ extensive U.S. manufacturing base and strengths in material science and innovation.”

Amcor’s CEO, Ron Delia, concluded, “Amcor and Bemis have many things in common starting with proud histories that date back more than 150 years.

Both companies are grounded in strong values, a shared commitment to innovation and value-added consumer packaging, and have talented management teams.”

“We have always had a great deal of respect for Bemis and we are thrilled that its team in Wisconsin and around the world will be joining Amcor.

Many people at Amcor today have joined us through acquisitions, including many of our leadership team, and we would expect Bemis to be well represented in Amcor at all levels of the organization.”

 

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